Let’s face it—running a business is not a walk in the park. Mid to large-scale enterprises often face the challenge of optimizing multiple operations to improve efficiency and accuracy, as failing to do so could slow or halt the entire operations.
This problem is where an enterprise resource planning (ERP) system comes in handy. ERP software enables organizations to organize and tie day-to-day activities together for efficient data and workflow management. Each team can access a single data repository, significantly reducing the likelihood of duplicate data, errors, and other discrepancies that may undermine optimized performance.
Unfortunately, not all ERPs are equal. There are two primary types to consider—generic and industry-specific ERP—each with unique strengths and use cases.
Generic ERP vs. Industry-Specific ERP
Generic ERP offers multiple features to accommodate many industries. These functions address core operations, like accounting and financial management, but can’t handle specialized processes unique to each sector. Meanwhile, industry-specific ERP provides tools and functionalities tailored to a company’s needs in a niche industry.
That’s not to say that generic ERPs are subpar. These systems cover various tasks, such as accounting, inventory, human resources, customer relationship management, and other essential business functions. They’re a great choice if you don’t require specialized features because you can save on cost.
However, industry-specific ERP is what you need to address more specific requirements. For example, a construction company may benefit from an industry-specific ERP with modules like estimation, change management, and daily field reports. Meanwhile, retail businesses might find order and inventory management modules helpful in day-to-day operations.
With that said, companies in niche industries may need to spend more to augment the capabilities of their generic ERP to suit their business activities. A better approach is to choose an industry-specific ERP from the start, like Acumatica Cloud ERP. Since this system already has the advanced capabilities that you’ll need to compete in your industry, you may end up saving more in the long run.
5 Benefits of Having an Industry-Specific ERP Software
Industry-specific ERP solutions drastically improve your enterprise’s internal and external operations via these benefits.
1. Addresses pain points specific to your industry
Generic ERPs target the mass B2B market, solving the challenges of a typical company. Think accounting, marketing, and human resources. However, generic ERP software can’t comprehensively address your industry’s unique needs and requirements.
On the flip side, industry-specific ERPs have your pain points in mind. Vendors and developers are typically industry professionals or do extensive research to stay updated on your niche and its problems. As a result, their solutions effectively remove roadblocks that undermine cohesive operations.
2. Uses industry-specific terminology and language
When it comes to complex industries, it pays to work with an ERP vendor that understands the terminologies and jargon you use daily. They have years of intensive knowledge about your industry, so communicating using niche language won’t be problematic with these systems.
This benefit also extends to support and feedback. You may freely talk to vendors about software issues since they can easily understand your problems. Efficient communication enables them to provide faster solutions, allowing you to get back on track ASAP.
3. Integrates better with existing systems
A common problem when dealing with generic ERPs is that you often have to customize or purchase add-ons for the system to be wholly usable to your company. This task typically requires a team of developers to tweak the software and make it work to match your requirements. But what if you don’t have the time to wait for the final product?
Meanwhile, industry-specific ERPs include modules specific to an industry. As such, they are easier and faster to integrate with other industry-specific software, systems, and equipment the company uses.
4. Is fast to implement and adopt
Unlike generic ERP solutions that typically require customizations, industry-specific ERPs come with built-in features that directly address your needs. As a result, there’s less time spent on tailoring the software for your organization to allow immediate implementation.
Since industry-specific ERPs are tailor-fit to your requirements and workflows, there’s a minimal learning curve during implementation. As such, your team will find it easy to understand how these systems work, leading to faster adoption.
5. Reduces the risk of non-compliance
Each industry has unique regulations, which might be challenging to navigate for some businesses. Fortunately, industry-specific ERPs can help you stay updated on relevant requirements to reduce the likelihood of non-compliance and penalties.
You may configure industry-related ERPs to include necessary compliance checks and data validation based on data from relevant regulatory bodies. For instance, most ERPs have document management systems that make your company easily auditable. Retail companies could also benefit from systems with point-of-sale (POS) modules to comply with bookkeeping and taxation requirements.
How to Choose the Right ERP Software
Do you need help picking the right ERP solution? Start by identifying your needs and pain points. If your business is in the manufacturing industry, you might need help with production management to oversee materials, labor, and costs. Understanding your requirements helps determine the features your prospective ERP must have.
Your system must also be scalable. It should accommodate rapidly growing operations as you expand, so pick one that supports your short and long-term goals. Moreover, it should be able to produce reports quickly to reduce wait times and improve the efficiency of your reporting processes. Check out this article for more considerations when choosing the best ERP solution.
It’s essential to pick the system that meets all your requirements. With the help of Acumatica, you can be at the forefront of emerging ERP trends. Let Yondu—Acumatica’s partner in the Philippines—introduce you to top-rate software solutions, such as the Acumatica ERP. Our systems can optimize all your processes, enabling you to run a cohesive business with efficient operations through and through.
Schedule a consultation with our cloud experts today for your company’s streamlined operations!
